Is Available Fin. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Available Fin. has moved from attractive to very attractive. The company is currently undervalued, especially when considering its low price-to-earnings (PE) ratio of 1.63 and price-to-book value of 0.14, which stand in stark contrast to peers like Bajaj Finance, which has a PE ratio of 35.82, and Bajaj Finserv at 34.99. Additionally, the company's EV to EBITDA ratio is extremely high at 169.10, indicating that it may not be capturing its true earnings potential relative to its enterprise value.
Comparing with peers, Available Fin. shows a PEG ratio of 0.00, suggesting that it may be undervalued compared to Life Insurance, which has a PEG of 0.69, and SBI Life Insurance at 3.3. Despite the recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -47.40% compared to the Sensex's 4.82%, the underlying valuation metrics indicate that Available Fin. presents a compelling investment opportunity at its current price of 169.90.